Bank Malaysia Negara Keeps Monetary Stance Left Unchanged

January 31, 2013

Malaysia’s overnight central bank interest rate has been at 3.0% since a 25-basis point increase in May 2011 culminated four such moves, the first of which was made in March 2010.  The benchmark will remain at that level following today’s first policy meeting of 2013.  The second meeting is scheduled for March 7 and, judging from the tone of today’s statement, considerably longer into this year.  CPI inflation, which averaged 1.6% last year, is projected to pick up in 2013 but to remain generally modest because of modest global growth prospects and contained commodity price inflation.  So long as inflation stays in check, officials will use such latitude to run a stance that supports their economy.  Thanks to robust consumption and investment, GDP is expected to expand around 5% this year.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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